Insurance Policy Language Changes Affecting Ongoing Care

In 2026, the battle for healthcare coverage is no longer just about “covered” versus “not covered.” It is about the specific definitions buried in the fine print of your policy. As insurers adopt AI-driven utilization management, they are subtly rewriting the language of “Medical Necessity” and “Ongoing Care” to shorten treatment windows.

However, there is also new federal protection that many seniors aren’t aware of yet. If you are receiving long-term treatment—such as physical therapy, chemotherapy, or wound care—knowing these four specific language changes can mean the difference between a completed recovery and a premature discharge.

The “Course of Treatment” Protection (The Good News)

For years, a common tactic by Medicare Advantage plans was to approve a treatment (like 12 sessions of physical therapy) but then force a “Re-Authorization” after just 4 sessions. This stalled care and frustrated doctors. Under the CMS Interoperability and Prior Authorization Final Rule (CMS-0057-F), which saw full implementation of its API and decision timeframe provisions on January 1, 2026, plans must now support continuity of care.

Specifically, the rule mandates that if a payer approves a prior authorization, that approval is valid for the duration of the approved service. If you receive a letter saying your approved chemotherapy or rehab is being “paused for re-review” mid-cycle, this may violate the new 2026 continuity standards. Cite the “Course of Treatment Validity” provision in your appeal.

The “Internal Criteria” Loophole (The Bad News)

While CMS has tried to force plans to follow traditional Medicare coverage rules, a major regulatory “deferral” in 2026 has left a dangerous loophole open. According to the CMS Contract Year 2026 Final Rule, CMS deferred finalizing the strict definition of “Internal Coverage Criteria.”

This means that in 2026, plans can still use proprietary algorithms—often developed by third-party firms—to define “medical necessity” when no specific Medicare National Coverage Determination (NCD) exists. If you are denied, demand a copy of the “Internal Coverage Criteria” used to make the decision. Under current transparency regulations, they are legally required to send you the specific clinical logic used by their algorithm.

The “Maintenance” vs. “Improvement” Trap

Despite the landmark Jimmo v. Sebelius settlement, which confirmed that Medicare must cover therapy to maintain a patient’s condition (not just improve it), 2026 policy language is trying to sneak the “Improvement Standard” back in through AI denials. A 2025 update from the Center for Medicare Advocacy warns that insurers are increasingly using phrases like “Plateaued Progress” or “Maximum Medical Improvement Reached” to bypass Jimmo protections.

If your skilled nursing or PT is cut off because you have “plateaued,” appeal immediately using the phrase: “This denial violates the Jimmo Settlement standards. Coverage is required for skilled maintenance therapy to prevent deterioration, regardless of improvement potential.”

The “Concurrent Review” Accelerator

For patients in Skilled Nursing Facilities (SNFs), the speed of reviews has accelerated. In 2026, many policies have updated their language to allow for “Concurrent Reviews” as frequently as every 7 days after the first two weeks of a stay.This rapid-fire review cycle often leads to a sudden Notice of Medicare Non-Coverage (NOMNC).

According to the CMS 2026 NOMNC Form Instructions, plans must deliver this notice at least two days before services end. However, the frequent “check-ins” by plan auditors mean the “coverage clock” is constantly being reset. Ask the facility’s social worker for the NOMNC at least two days before your discharge. You have the right to an expedited appeal through the Quality Improvement Organization (QIO) before you leave the building.

“Custodial” vs. “Skilled” Re-Classification

Finally, watch out for the shift from “Skilled Care” to “Custodial Care.” Policies in 2026 are using stricter definitions for what counts as “skilled” to align with the new TEAM (Transforming Episode Accountability Model). If your daily routine involves mostly help with dressing, eating, or taking pills, insurers will quickly reclassify your entire stay as “Custodial,” which is not covered by Medicare or most private plans. Ensure your daily medical notes document specific skilled interventions, such as “wound dressing changes by RN,” “gait training with PT,” or “insulin titration.” If the notes only say “patient ate well,” you are walking into a Custodial Care denial.

Words Matter More Than Diagnoses

In 2026, your diagnosis gets you into the hospital, but your policy language determines when you get kicked out. By understanding the critical difference between “Maintenance” and “Improvement,” and knowing your rights under the new “Course of Treatment” rules, you can protect your care plan from administrative sabotage.

Never accept a verbal denial from a case manager. Demand that they put the specific policy language and the “Internal Criteria” citation in writing. Often, the mere request for written proof is enough to make a shaky denial disappear.

Has your insurance stopped paying for therapy because you “weren’t improving” fast enough? Leave a comment below—we’re tracking Jimmo violations in 2026!